Market Analysis Report (21 Jan 2022)

The central bank of Russia has proposed that crypto mining and trading should be outlawed. Owning crypto, however, would still be allowed. The news comes following the presentation of a report “Cryptocurrencies: trends, risks, measures,” during an online press conference with Elizaveta Danilova, the director of the Bank of Russia’s Financial Stability Department.

In the report, cryptocurrencies are described as being volatile and regularly used in illegal activities, such as fraud. As such, the proposed laws and regulations would look to build on Russia’s existing ban on using crypto for payments that was signed into law in July 2021. 

The bank has already barred mutual funds from investing in digital assets, and is now looking to introduce a punishment for those buying or selling goods, services and labour by Russian individuals and businesses, the report suggests.

Although cryptocurrency mining has flourished in Russia over the last year, miners said the stance was unsurprising, and that the probability of a complete ban of the entire cryptocurrency industry is “negligible,” said Roman Zabuga, the PR director of mining hosting provider BitRiver.

Source: https://www.cryptocompare.com/email-updates/daily/2022/jan/21/